Reviewing BorgWarner (NYSE:BWA) & ChargePoint (NYSE:CHPT)

ChargePoint (NYSE:CHPT) and BorgWarner (NYSE:BWA) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Earnings & Valuation

This table compares ChargePoint and BorgWarner”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ChargePoint	$411.22 million	0.34	-$220.20 million	($8.68)	-0.67
BorgWarner	$14.32 billion	0.93	$277.00 million	$1.69	38.25

BorgWarner has higher revenue and earnings than ChargePoint. ChargePoint is trading at a lower price-to-earnings ratio than BorgWarner, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

ChargePoint has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, BorgWarner has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Institutional & Insider Ownership

37.8% of ChargePoint shares are held by institutional investors. Comparatively, 95.7% of BorgWarner shares are held by institutional investors. 4.2% of ChargePoint shares are held by company insiders. Comparatively, 0.8% of BorgWarner shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares ChargePoint and BorgWarner’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ChargePoint	-49.66%	-504.42%	-18.93%
BorgWarner	2.53%	18.36%	7.65%

Analyst Ratings

This is a breakdown of current recommendations for ChargePoint and BorgWarner, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ChargePoint	3	6	1	0	1.80
BorgWarner	0	6	9	0	2.60

ChargePoint currently has a consensus target price of $8.31, indicating a potential upside of 43.20%. BorgWarner has a consensus target price of $74.57, indicating a potential upside of 15.36%. Given ChargePoint’s higher probable upside, research analysts clearly believe ChargePoint is more favorable than BorgWarner.

Summary

BorgWarner beats ChargePoint on 11 of the 14 factors compared between the two stocks.

About ChargePoint

ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the North America and Europe. The company serves commercial, such as retail, workplace, hospitality, parking, recreation, municipal, education, and highway fast charge; fleet, which include delivery, take home, logistics, motor pool, transit, and shared mobility; and residential including single family homes and multi-family apartments and condominiums customers. ChargePoint Holdings, Inc. was founded in 2007 and is headquartered in Campbell, California.

About BorgWarner

BorgWarner Inc., together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging. The company provides power electronics, control modules, software, friction, and mechanical products for automatic transmissions and torque-management products. It sells its products to original equipment manufacturers of light vehicles, which comprise passenger cars, sport-utility vehicles, vans, and light trucks; commercial vehicles, including medium-duty and heavy-duty trucks, and buses; and off-highway vehicles, such as agricultural and construction machinery, and marine applications, as well as to tier one vehicle systems suppliers and the aftermarket for light, commercial, and off-highway vehicles. The company was formerly known as Borg-Warner Automotive, Inc. BorgWarner Inc. was incorporated in 1987 and is headquartered in Auburn Hills, Michigan.